Default A Big Lie if Debt Ceiling Not Raised

April 12th, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on a proposed increased in the $14.294 trillion national debt ceiling:

“A big lie being perpetrated by the Obama Administration and mainstream media is that if Congress does not raise the $14.3 trillion national debt ceiling, the nation will default on its obligations. This is nothing more than a scare tactic. Just like a consumer credit limit, if the debt ceiling is reached, this will simply mean that the Treasury cannot issue new debt. The existing debt could still be refinanced, but interest owed on the debt would have to be paid out of revenue and the budget would also have to be balanced immediately. That is not a default.

“The Obama Administration needs to stop lying about the debt ceiling, and level with the American people about the dire fiscal catastrophe the nation faces with a debt so large that it cannot be paid.”

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